The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-10-11
The Tariff.

To the Editor of She Indianapolis Journal
The construction of well-adjusted tariff is
most strictly practical business proceeding.
1t does not depend upon poetry, fiction, senti-
ment or theory, but it gets right down TO the
bedrock of minute details of everyday life in
the home mandatory. Th ere are three prn-
cipal items to be considered in estimating the
cost of producing a manufactured article. They
price of labor, cost of the raw material, kind
of machinery used. When the cost of production
is determined, which, of course. should include
interest the capital invested in the plant;
then add to the total cos. of production 10 per
cent. net profit; and in many cases where the
wear and tear of machinery is great 20 or %
per cent. net profit would not be unreasonable
because of the contingencies of risk incurred by
the breakage or wearing out of expensive
chinery. This would constitute standard, or
criterion. by which to regulate the tariff so as
to insure the home manufacturers a living
profit and to justify them in continuing in bust
ness. The cost of homo production together
with the 10. 20. 25, or other net profit per cent.
added. would furnish the maximum rate or
high-water line, to which the tariff should be
adjusted.
In order to do this properly the cost of foreign
manufacturers should be carefully investigated
and ascertained as far practicable; and if by
reason of the cheap labor which foreign manu-
facturers have the advantage Of the cost of pro-
ducton is much less than ours. let tariff rate
sufficiently high be imposed upon their goods.
to equal the rate of protection demanded by the
home product; if it be 40. 30, rs. even 100 per
cent the cost of the foreign articles. let it be
levied. To render this idea plain: Let
the initial letter h represent the total cost OF
the home article, then Fl plus 10, 20, 25.
any other per cent will represent what the
home manufacturer should have for his goods,
il order to make success of his business. Let
represent the total cost of the foreign made
article, then f plus 40, so. 70. or 100 per cent.
will represent what the foreign importer should
be allowed to sell his goods at in this country,
to injuriousy affect the home manu-
facturer by his competition. Thus it will be
seen that the process of formulating tariff
as follows: Ell plus 10 per cent. equals F plus 40
per cent; H plus 20 per cent. equals F plus so
per cent; III plus 30 per cent. equals plus 70
per cent; H plus 40 per cent equals plus 100
per cent, and SO on.
The rates on different articles must be differ
ent, varying with the commercial demand for
such articles. This can only be regulated by ad-
justing it according to supply and demand. and
not by any arbitrary or uniform rate on all AS
general proposition, tariff should be levied on
all raw materials that be grown or made
here and on all articles that can be manufact-
ured here, and that tariff should be sufficient to
prevent injurious foreign competition. The rate
should not be SO high as to amount to prohibit
ton of foreign imports, and thereby exclude the
foreign trade; but it should be high enough to
amply protect home manufacturers. and to ex-
cite a healthy and spirited home competition;
because there millions of capital waiting and
watching for profitable investment in this coun-
try, and much of it will go into home manufact-
uring plants whenever capitalists assured of
anything like permanent profits. We must pro-
vide for our own manufacturers, first and fore
most. and not for the welfare of foreign manu-
facturers-that is too big an undertaking for any
country.
1t is argued by the advocates OF absolute free
trade, as we'll as the advocates of a low tariff,
hot for Ir TOW lnui0d iyYdI
consumer or last purchaser amongst our people;
and that its only effect is to benefit the home
manufacturer, at the expense of our own people
But is such argument warranted by the factss
We think not, for whenever any branch or line
of American manufactures becomes profitable
by reason of the intervention of tariff. some
other capitalist will invest his in such
manufactures, and thus direct home competition
is inaugurated at once. So that the fear of
monopoly is well founded, there is
tariff against home capitalists engaging IN the
manufacture and sale of anything they deem
profitable; and instead of a protective tariff
!essenug competition. it has a direct tendency
at home. Hence the tariff is in many instances
a direct blessing to consumers. because it en-
courages moro people to engage in manufactur-
ing than otherwise would; and when manufact-
urers in any line of business become numerous,
then active competition in the sale of goods
must inevitably reduce the price of such goods.
A we'll adj usted tariff would require revision
occasionally; perhaps about once In ten years,
in order to meet the changes and variations in
commerce, caused by the rapid stride OF lnven-
tion and the overcoming mutations of
fashion, habit TASTE etc. Sometimes a change
of tariff rates would be required on some certain
articles line of goods between the periods of
revision, but this could be accomplished, when
ever the exigency arose, because Congress is in
session annually. Hence no monopoly OF extor-
tionate profits any tariff matter could be long
maintained. If the present tariff should be
carefully adjusted and revised by the next CEN
sus year. 1890, the great probability is that it
would need revision of any consequence before
1900. This should be done by Congress, and a
quietus put tariff tinkering until something
arises that really demands remodeliug, and that
could actually be bettered by some modification
or change. VIM. r. NORRIS.
SHELBYvILLE, Ind, Oct. s. 1887.